AUCKLAND, Today: Kiwi small businesses are eyeing Budget 2025 with mixed feelings, hoping for real support but not fully convinced it’ll deliver, according to Prospa’s latest SME Sentiment Tracker.
Nearly half (49%) of SMEs aren’t confident the 22 May Budget will provide meaningful help. Just 26% say the government’s been good for business, while 37% say it hasn’t.
The top wish list? Tax relief and less red tape. Two in five (40%) SMEs say the Budget significantly impacts their success — so the stakes feel pretty high.
Adrienne Begbie, Managing Director of Prospa NZ, said, “The upcoming budget is clearly important to small business owners and what we’re hearing from them is a desire for practical changes that would make a difference to their day to day operations.”
Tax reform topped the list of Budget priorities (39%), followed by reducing bureaucracy (25%). Taxes are currently the biggest cost for 22% of SMEs, ahead of staff and materials.
“SMEs are the backbone of our economy, and merit targeted support to continue thriving. By removing unnecessary barriers, SMEs can unlock growth and reinvest in their people and products,” Begbie added.
“Small businesses are becoming increasingly savvy about their options. With the right funding, many are ready to take the next step in their growth journey.” – Adrienne Begbie
Most SMEs (57%) say business health is “good” or “very good.” But 59% have just three months or less in cash reserves, with 22% holding under a month.
Other big challenges include slower spending, staffing issues, and rising pressure from e-commerce and bigger players. Market uncertainty is also growing.
Still, many are optimistic. One-third remain confident about the future, and 43% expect profits to stay stable next year. Some (35%) even expect to grow.
More SMEs are also eyeing external funding, with 30% likely to seek finance in the next year. Many (55%) are confident in providers like Prospa to support that growth.
“Small businesses are becoming increasingly savvy about their options. With the right funding, many are ready to take the next step in their growth journey,” Begbie said.
“It’s encouraging to see this shift as it shows confidence and capability is still very much alive in the SME community,” said Begbie.
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